Government Moves To Reserve Retail Trade, Jobs for Kenyans

By Our Correspondent

The Government plans to reserve retail trade and certain lower-level jobs for Kenyans under a broader agreement aimed at supporting local traders and making the business environment more predictable.

The new measures will spell out where foreigners can participate, while still allowing in foreign investment that brings capital, technology, value addition and quality jobs.

The announcement was made in a communiqué issued after consultations between President William Samoei Ruto, traders’ representatives and stakeholders in the consolidated cargo sector, following concerns over taxation, cargo clearance and the handling of consolidated imports.

The Government said the agreement is meant to resolve pending issues while improving compliance, transparency and accountability in the consolidated cargo sector.

At the heart of the new framework is a pledge to support Kenyan traders and legitimate businesses, while clearly setting the boundaries for foreign participation.

“The Government will expand existing legislation to reserve retail trade and specified lower-level jobs for Kenyans, while clearly defining areas for foreign participation.”

The move comes as the Government responds to traders’ concerns about the rising cost of doing business and tries to create a better environment for businesses to operate and grow.

The communiqué says foreign investment will still be welcomed where it brings capital, technology, value addition and quality employment opportunities to the Kenyan economy.

The Government will also work with county governments to improve conditions for traders, with the County Aggregation and Industrial Parks programme named as one of the ways local enterprises can be supported.

According to the communiqué, the partnership is also meant to protect legitimate businesses from unnecessary harassment, intimidation and disruption.

“Foreign investment that brings capital, technology, value addition and quality jobs will continue to be encouraged,” it stated.

The measures are part of a broader set of reforms in the consolidated cargo sector, after recent disagreements between traders and the Kenya Revenue Authority over the benchmark used for consolidated cargo.

Under the agreement, KRA will lower the benchmark for general consolidated cargo from Ksh2.5 million to Ksh2 million.

Existing rates for ready-made garments, footwear and fabrics will stay the same, while the newly negotiated rates for air cargo will remain in place.

The Advance Cargo Declaration requirement will also be scrapped to ease cargo clearance and support legitimate trade.

“The National Government will work with county governments to create a conducive business environment for traders, leveraging the County Aggregation and Industrial Parks (CAIPs) programme, while protecting legitimate businesses from unnecessary harassment, intimidation and disruption,” the communiqué read in part.

The agreement also sets new rules for cargo consolidators. All consolidators will be vetted and registered again by KRA, and they will have to submit full lists of the traders and importers whose goods they combine.

The deadline for registration, vetting and submission of the required trader disclosures is October 15, 2026.

KRA will also develop and publish an exclusion list of goods that will not qualify for clearance under the general consolidated cargo framework. The list will consider the value and nature of goods, specific tax rates, excisable goods and other customs and revenue factors.

The Government said this is meant to give traders and consolidators more certainty about which goods qualify for consolidation and to make sure the framework is applied consistently and transparently.

“The Government recognises traders, importers, manufacturers, logistics operators and MSMEs as an essential pillar of Kenya’s economy,” the joint release stated.

The package also provides for the establishment and operation of designated de-consolidation centres in Nairobi and Mombasa.

The centres are expected to help separate consolidated cargo for individual traders more efficiently and transparently, improve cargo handling and clearance, and cut unnecessary logistical and administrative costs.

In another immediate measure, Kenya Railways will cut the cost of transporting cargo from the Inland Container Depot to the Bomaline De-consolidation Centre from Ksh58,000 to Ksh10,000.

The reduction takes effect immediately and is part of efforts to lower the cost of moving goods.

The Government and traders have also agreed to form a multi-stakeholder committee chaired by the Cabinet Secretary for Investments, Trade and Industry. The committee will include KRA, relevant Government agencies, traders, consolidators and other stakeholders.

It will oversee implementation of the agreed measures, address emerging issues and report to the President every quarter on progress.

The Government said the agreement begins a new partnership with traders based on consultation, predictability, compliance and shared responsibility.

Traders and consolidators, for their part, will be expected to comply with customs and tax rules and operate within the agreed framework, while the Government has committed to simplifying trade procedures, cutting unnecessary costs, improving infrastructure and creating a better environment for legitimate businesses to grow.